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Hong Kong: 2025 Policy Address – Implications for Employers

By - - Employment Law

The Hong Kong Chief Executive’s 2025 Policy Address outlines several initiatives aimed at strengthening the workforce and supporting employers. Below we detail how businesses can respond strategically.

Expanding the Talent Pool

Overseas Recruitment: To address local labour shortages, employers will be encouraged to recruit internationally.

Re-employment Scheme: The Labour Department’s Re-employment Allowance Pilot Scheme – which is a three-year initiative launched to encourage elderly and middle-aged individuals to re-enter the workforce – has already facilitated over 27,000 placements since July 2024.

Retirement Planning: With no statutory retirement age, employers can proactively design retirement and succession policies. Clear communication about continued employment, training opportunities, and flexible engagement options (e.g. part-time roles) helps retain experienced staff and support gradual retirement.

AI Integration and Training

AI development is a key focus. Employers should establish internal policies covering approved tools, confidentiality, and accuracy checks.

To maximise AI’s benefits, training is essential. Employers may consider “training bonds” requiring employees to repay costs if they leave shortly after completing sponsored courses. Clear eligibility criteria can help avoid discrimination claims.

Employee Wellbeing and ESG Alignment

Government initiatives like the After School Care Service Scheme aim to support working parents. Employers can complement these by offering flexible work arrangements, robust grievance procedures, and employee assistance programmes.

Well-drafted and accessible policies signal employer commitment to wellbeing and provide clear steps for addressing workplace issues.

Next Steps for Employers

To align with the 2025 Policy Address, employers should:

  • Audit visa processes and retirement policies.
  • Formalise AI usage and training frameworks.
  • Enhance wellbeing initiatives.

This is a high-level general update only. Legal advice should be obtained on specific circumstances.
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